Chart patternsBeginner
Dead cat bounce
A short recovery in the middle of a big fall, which then fails as the decline continues.
- What it means
- It looks like the bottom, but on weak volume and with a lower high it's often a trap.
- What to watch
- Higher highs and real volume before calling a bottom.
- How Compass-Alpha uses it
- Background only; not used in any figure on Compass-Alpha.
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